The capacity trading reforms are expected to foster the development of a more liquid secondary gas transportation capacity market and, in so doing, improve the efficiency with which capacity is allocated and used on gas transportation assets. The reforms apply to gas transmission pipelines and four designated compressors, and include a Platform to trade secondary capacity transportation and a Day Ahead Auction for contracted but un-nominated capacity.
The AER and AEMO both have implementation and operating roles. AEMO is responsible for implementing, and running the Trading Platform and Day-ahead auctions. For more information on AEMO’s role, please see AEMO’s website.
The AER is responsible for monitoring and enforcing compliance with various obligations in the Gas Law, Gas Rules and AEMO procedures. The AER is also responsible for granting transportation facility exemptions to the reforms, overseeing the classification of transitional firm services and publishing record keeping guidelines relating to nominations and scheduling.
Operational Transportation Service Code
The AER is also custodian of the Operational Transportation Service Code (the Code) and can amend the Code in accordance with the NGL and NGR. Within the first 12 months of the capacity trading reforms being implemented the AER will also conduct a review of the compliance of Standard Operational Transportation Service Agreements and standardisation charges with the principles in the NGR and the Code.